Materiel Control: GOCESS Playbook PDF 2023

2023 D E P T. O F T HE A I R FO R CE Materiel Control: Government Operated Civil Engineer Supply Store (GOCESS) Playbook  Air Force Civil...

2023 D E P T. O F T HE A I R FO R CE Materiel Control: Government Operated Civil Engineer Supply Store (GOCESS) Playbook  Air Force Civil Engineer Materiel Control: GOCESS Playbook Table of Contents Chapter 1 Overview and Introduction............................................................................................................................. 5 1.1 Introduction............................................................................................................................................................ 6 1.2 Roles and Responsibilities....................................................................................................................................... 6 Chapter 2 Inventory Items.............................................................................................................................................. 8 2.1 Draft Consumable Specification............................................................................................................................... 8 2.1.1 Loading Consumable Specifications......................................................................................................................... 8 2.1.2 Need for Specification.............................................................................................................................................. 8 2.2 Locations................................................................................................................................................................. 9 2.2.1 Materiel Storage Requirements............................................................................................................................... 9 2.3 Creation of Inventory Items..................................................................................................................................... 9 2.4 Disposal of Excess Materiel................................................................................................................................... 10 2.5 Cycle Counts.......................................................................................................................................................... 11 2.6 Inventory Results................................................................................................................................................... 11 2.7 Inventory Adjustments.......................................................................................................................................... 12 2.7.1 Donated In.............................................................................................................................................................. 12 2.7.2 Donated Out........................................................................................................................................................... 12 2.8 Property Lost, Damaged, Destroyed or Stolen....................................................................................................... 12 2.9 Materiel Maintained in Shops............................................................................................................................... 13 2.9.1 Forward Stores....................................................................................................................................................... 13 2.10 Precious Metals Recovery Program (PMRP)........................................................................................................... 14 Chapter 3 Management of Inventory Items................................................................................................................. 15 3.1 Collaboration......................................................................................................................................................... 15 3.2 Setting Levels......................................................................................................................................................... 15 3.2.1 Minimum/Maximum (Min/Max) Level.................................................................................................................. 15 3.2.2 Reorder Quantity................................................................................................................................................... 15 3.3 Minimum Level...................................................................................................................................................... 15 Chapter 4 Issue Materiel............................................................................................................................................... 17 4.1 GOCESS Store Materiel Issue................................................................................................................................. 17 4.2 Indirect Materiels.................................................................................................................................................. 17 4.2.1 Key Points to Know about Indirect Materiel Cost.................................................................................................. 18 4.3 Direct Materiels..................................................................................................................................................... 18 4.3.1 Key Points to Know about Direct Materiel Cost..................................................................................................... 19 4.4 U-Fix-It Materiel Issue........................................................................................................................................... 19 Chapter 5 U-Fix-It Program........................................................................................................................................... 20 5.1 U-Fix-It Program Scope.......................................................................................................................................... 20 5.1.1 Operation Courses of Action (COA) for GOCESS U-Fix-It Program......................................................................... 20 5.1.2 Customer Verification............................................................................................................................................ 20 5.1.3 U-Fix-It Program Work Effort Preapproval............................................................................................................. 20 5.2 Loaned Tools......................................................................................................................................................... 21 5.2.1 Tool Safety............................................................................................................................................................. 21 5.2.2 Personal Protective Equipment (PPE) and Documented Safety Training............................................................... 21 Chapter 6 Create Purchase Request (PR)....................................................................................................................... 22 6.1 PRs........................................................................................................................................................................ 22 6.2 Types of PRs.......................................................................................................................................................... 22 6.2.1 PRs for Operating Stock......................................................................................................................................... 22 6.2.2 PRs to support a Work Task................................................................................................................................... 22 6.2.3 PRs for Indirect Materiel........................................................................................................................................ 23 6.2.4 Non-Inventory PRs................................................................................................................................................. 23 Chapter 7 Purchase Orders (POs).................................................................................................................................. 24 7.1 Right Quality.......................................................................................................................................................... 24 7.2 Right Quantity....................................................................................................................................................... 24 7.3 Right Time............................................................................................................................................................. 24 2|Page  Air Force Civil Engineer Materiel Control: GOCESS Playbook 7.4 Right Source.......................................................................................................................................................... 25 7.5 Right Price............................................................................................................................................................. 25 7.6 Supply Sources used at GOCESS Locations............................................................................................................. 26 7.7 Supply Funding Document (SFD) and CE Financial Management Sources.............................................................. 26 7.7.1 Supply Funding Document Types........................................................................................................................... 26 7.7.2 PO Process.............................................................................................................................................................. 27 7.8 Managing Vendor Records..................................................................................................................................... 29 7.8.1 Vendors and the System for Award Management (SAM)...................................................................................... 29 7.8.2 Local Vendor File.................................................................................................................................................... 30 7.9 GOCESS PO Changes.............................................................................................................................................. 30 Chapter 8 Receipt and Invoice...................................................................................................................................... 31 8.1 Receiving Inventory Items from Vendors............................................................................................................... 31 8.2 Processing the Receipt........................................................................................................................................... 31 8.3 Receipt and Invoice at GOCESS Installations.......................................................................................................... 31 8.4 Partial Receipts...................................................................................................................................................... 32 8.5 Cost Change........................................................................................................................................................... 32 8.6 Final Cost Adjustments.......................................................................................................................................... 32 8.7 Materiel Receipt Validation................................................................................................................................... 32 Chapter 9 Hazardous Materials (HAZMAT).................................................................................................................... 33 9.1 Purpose of HAZMAT Management and EESOH-MIS............................................................................................... 33 9.2 Obtaining Authorization for HAZMAT and Exception List....................................................................................... 33 9.3 HAZMAT Storage and Restrictions......................................................................................................................... 33 9.4 HAZMAT Labeling and Issue................................................................................................................................... 34 9.5 HAZMAT Cautions.................................................................................................................................................. 34 9.6 Hazardous Material Pharmacy (HAZMART) Operations......................................................................................... 34 9.7 Ordering HAZMAT via the HAZMART Pharmacy.................................................................................................... 34 9.8 Hazardous Waste (HAZWASTE).............................................................................................................................. 35 9.9 Directives Applicable to HAZMAT.......................................................................................................................... 35 Chapter10 Program Reviews.......................................................................................................................................... 36 10.1 Standard Business Processes................................................................................................................................. 36 10.2 Data Quality.......................................................................................................................................................... 36 10.3 Business Processes and Data Quality Reviews....................................................................................................... 36 10.4 End of Year (EOY) Actions...................................................................................................................................... 37 Appendix A - Acronyms and Definitions............................................................................................................................ 38 Appendix B - Master List of Links....................................................................................................................................... 45 Table of Tables Table 1: Roles and Responsibilities..................................................................................................................................... 7 Table 2: List of HAZMAT Directives................................................................................................................................... 35 3|Page  Air Force Civil Engineer Materiel Control: GOCESS Playbook Document Change Log The table below provides a log of significant changes found in this Playbook. CHANGE # SECTION # DESCRIPTION OF CHANGE DATE (MM/DD/YY) 0 ALL Playbook Rewrite 11/18/2021 1 All Playbook update and split into two playbooks, GOCESS and 02/28/2023 COCESS. All chapters updated. 2 Title Page Playbook title changed to Materiel Control: GOCESS 02/28/2023 4|Page  Air Force Civil Engineer Materiel Control: GOCESS Playbook Chapter 1 Overview and Introduction While the core process steps to identify materiel are universal in nature, the goal is to determine if an item is on hand or must be ordered. The process also includes the receiving, issuing, and tracking costs that are associated with the materiel. This playbook will primarily focus on Materiel Control (MC) management functions based on Next Generation Information Technology (NexGen). Individuals working in MC must develop a mindset to increase their knowledge from the basic to the advanced levels, which occurs through education and experience. This playbook involves the various processes used within MC to purchase quality materiels, tools, and equipment. The intended use for these items will aid engineers in completing a Work Task (WT), construction, recurring preventive maintenance (PM), repairs, and stock the squadron’s U-Fix-It Program. There are two types of MC operations with government personnel assigned that are used at active-duty Department of Air Force (DAF) installations. When a contractor provides materiel support and management on a contract with the DAF, it is referred to as a Contractor Operated Civil Engineer Supply Store (COCESS). When the government provides materiel support and management, the term used is Government Operated Civil Engineer Supply Store (GOCESS). This playbook focuses on the GOCESS operations and the processes and procedures that MC or personnel will execute in NexGen. When accomplished effectively, the processes promote enhanced decision-making to meet critical Air Force (AF) missions and operations in a resource-constrained environment. At a GOCESS location, the government owns the Inventory. The government performs the required inventory for each line item and the required research prior to an adjustment being made. Materiel management processes and procedures are performed by government personnel. MC basic capabilities include: 1. Creating specifications and Inventory items (inventory line items) 2. Storage Locations 3. Creating Purchase Orders (PO) 4. Receiving materiel 5. Issuing materiel 6. Disposal These processes must be executed effectively to provide materiel when and where it is required, at competitive costs. Enhanced experience with NexGen capabilities formalizes and measures processes used. Some of these processes include: A. Manage stock levels. B. Resolve discrepancies. C. Analyze supplier performance. D. Process invoices to reconcile Supply Funding Documents. E. Conduct and analyze inventory transactions. F. Work with Civil Engineer (CE) Financial Management to resolve funding issues. Advanced MC operations are worthy of benchmarking and are performed in such an outstanding manner that they exceed customer expectations of premier customer service. Please see the Operations Engineering (OE) Playbook for additional information on the maturity capabilities of MC. 5|Page  Air Force Civil Engineer Materiel Control: GOCESS Playbook 1.1 Introduction This introduction provides a basic description of the typical elements that make up this work section and follows with lists of duties. Civil Engineer Operations Flight (CEO)’s main objective is to: Effectively and efficiently operate, maintain, and repair AF Real Property (RP) and Real Property Installed Equipment (RPIE) through employment of asset management principles. Reference Air Force Instruction (AFI) 32-1001, Civil Engineer Operations. This playbook focuses on program management aspects of MC while specific “How To” information is located in the MC Business Process Library (BPL) SharePoint. Limitations: This playbook does not replace, supersede, or circumvent existing Department of Defense (DoD) or DAF policy. Applicability: The primary target for this playbook is active-duty CEO personnel to support management in accordance with (IAW) the following guidance in this playbook. 1.2 Roles and Responsibilities Roles Responsibilities Receives and bins materiel when items are received. Warehouses Base Civil Engineer (BCE) materiel whether the Inventory Item is stocked or materiel is being held for WT scheduling. Ensures Inventory items in the stores is effectively managed and accounted for on a regular basis. Inventories materiel and documents adjustments to on-hand quantities of Inventory items. Coordinates with supply sources/vendors on receipt problems when incorrect/damaged items are received. Issues hazardous and flammable materiel when necessary and ensures that all materiel is Operational inventoried annually. Monitors BCE materiel storage-related facilities, including proper handling and storage of Inventory items. Assigns warehouse locations. Establishes a system to minimize accumulation and maximize use of excess materiel. Retires Inventory items and specifications. Responds to after-hours emergency materiel requests when necessary. Uses locally developed post-post procedures to requisition, receipt, bin, and issue materiel when the computer system is off-line and ensures transactions are processed in the correct order of precedence when the computer becomes operational. Determines whether direct or indirect materiel is used. Creates issue tickets. Selects Source of Supply, Supply Funding Document (SFD), and Vendor for PO. Creates PR for new items when necessary. Inventory Creates Item Specification draft and inventory items. Technician Receives and validates items against PO. Monitors minimum stock levels. Identifies a need to update or create a new vendor record. Conducts vendor research. 6|Page  Air Force Civil Engineer Materiel Control: GOCESS Playbook Roles Responsibilities Prepares POs to procure materiel for Work Groups (WG) and WTs. Prepares entries for Blanket Purchase Agreements (BPAs) and requirements contracts. Establishes a training program, including NexGen training, for assigned government personnel. Reviews, approves, and coordinates with customers to ensure required information is provided. Assists WGs with developing draft consumable specifications and Inventory items for new requirements. Orders items from Hazardous Material Pharmacy (HAZMART) for the WGs and will ensure information is entered into the Enterprise Environmental, Safety and Occupational Health – Management Information System (EESOH-MIS) and NexGen. Obtains bio-environmental coordination on items identified as possible Hazardous Material (HAZMAT) (when the BCE decides to provide a child HAZMART). Prepares AF Form 9, Request for Purchase, and coordinates with CE Financial Management, Base Contracting, and Comptroller. WGs coordinate efforts from required agencies before ordering the items through MC when the installation’s Central HAZMART supports CE. Processes materiel transactions in approved Information Technology (IT) systems including Chief of Materiel credit card transactions, requisition, receipt, issue, transfer, or inventory of materiel Control documents exceptions. (CoMC)/Inventory Enforces initial requirements for HAZMAT obtained through BCE sources of supply are Technician approved by the Hazardous Material Management Process (HMMP) and, upon receipt of HAZMAT, required information is passed to EESOH-MIS. Add inventory item to NexGen. Serves as the accountable supply officer for BCE and for providing materiel requirements. Ensures MC personnel order materiel for U-Fix-It Program WTs; receives, bins, and issues U- Fix-It Program store Inventory Items. Provides management oversight of the main store, receiving area, forward stores, outdoor storage, and U-Fix-It Program Stores. Manages logistics-related audit reports to ensure property accountability and audit trails exist for all materiel transactions, regardless of the inventory management system used. Provides liaison with Installation Contracting, Logistics Readiness Squadron (LRS), Defense Logistics Agency (DLA), General Services Administration (GSA), and local vendors to procure and receive correct items and quantities of materiel. Ensures all BCE materiel transactions are approved before they are processed including: All transactions associated with requisition, receipt, issue, transfer, or inventory of materiel and ensures modifications to Inventory items balances are documented. CoMC review and approval of PRs is mandatory. Reviews and approves PR and coordinates with Customer as necessary. Table 1: Roles and Responsibilities Note: This list provides a comprehensive inclusion of the responsibilities for GOCESS operations. There are additional responsibilities that may be required based on mission requirements, but they are not included in this playbook. 7|Page  Air Force Civil Engineer Materiel Control: GOCESS Playbook Chapter 2 Inventory Items CE has elected to use the Moving Average Cost (MAC) flow assumption for arriving at historical cost IAW DoD 7000.14-R, Volume 4, Financial Management Regulation, Chapter 4. Historical cost must include all appropriate purchase and production costs incurred to bring the items to their current condition and location. 2.1 Draft Consumable Specification Specifications are associated with inventory items and they help describe and catalog inventory items. Specifications determine default values for the inventory item, link materiel orders with available inventory, and are required for the correct processing of inventory items. Maintenance shops require to complete required maintenance actions. In the situation where an item is required but not loaded in NexGen, those items can still be procured. It is necessary to load a specification and an inventory item so that the item can be procured, and the cost can be input against the WT. The specification needs to contain the majority of the item identification information. The process for creating and adding a new specification in NexGen begins with a planner/craftsman who researches and gathers information for the specification. This requires item characteristics, vendor information, cost comparison, and any other information necessary for placing an order. The manufacturer’s name and part number are required in order for the supply source to know the specific item for price quotes. 2.1.1 Loading Consumable Specifications MC is notified by the shop that a new draft consumable specification has been loaded. MC quality controls the consumable specification, creates an Inventory item, and notifies the shop that they can now order the item. Shops order the item using a Purchase Request (PR). All inventory item record names must match the specification titles added to the specification database for the installation. The following naming convention required for all items: Item, Type, Materiel, and Size. Example: Bolt, Lag, Zinc, 5/16” x 3”. This enables standardization and enterprise-wide analysis of materiel consumption data. Ultimately, the decision for what to carry in the store is made by collaboration between the CoMC and the maintenance shop. 2.1.2 Need for Specification Once the consumable specification is received by the CoMC, a check is made to determine if the new specification is a duplicate of an already loaded specification. Also checked is whether there is a suitable alternative item already loaded. If no other specification or suitable an Inventory Item is loaded, the consumable specification is finalized. The MC ensures detailed information is loaded for the consumable specification see the MC BPL SharePoint for further information. In NexGen, consumable specifications and Inventory items must contain item characteristics, vendor information, cost comparison, manufacturer’s name and part number (when available), and any other information necessary for placing an order with the supply source. 8|Page  Air Force Civil Engineer Materiel Control: GOCESS Playbook New consumable specifications are loaded and maintained in draft format. Loading specifications as drafts means they are not added to the enterprise specification database. Instead, these specifications are only available for the use of the base that loaded them into NexGen. No other installation will be able to view them. See MC Naming Conventions for how to name Consumable Specifications. This document will help ensure that installations use common naming conventions when dealing with various MC transactions. 2.2 Locations NexGen requires each inventory item to be assigned Primary Location (PIL) which is identified as (e.g., warehouse) and a Storage location (e.g., bin) within a Primary Inventory Location. Storage areas denote specific areas where an item can be located. Items may be held in the main store, a WT holding location, forward store, Do It Now (DIN) truck, outdoor storage yard, etc. Each location can be further subdivided into logical, physical sections within the master area. The creation of operating materiel inventory item locations is an essential factor in MC. The narrative contained within the MC BPL SharePoint describes the storage and materiel handling process within the CE organization. It also provides a location hierarchy for operating materiel. 2.2.1 Materiel Storage Requirements Each item must have an assigned location. Not all items needed by maintenance are required to be stocked in the warehouse or store, but a location is required to build the inventory item in NexGen. If inventory is be maintained within the warehouse or store, it must be afforded proper and protective storage. Materiel must be maintained in ready-for-issue condition. Meaning items must be protected to prevent damage, deterioration, or potential theft. When possible, materiel is maintained in covered storage areas/facilities. Those items maintained in outdoor storage are afforded proper protection, including plastics, tarps, or portable shelters. All physical materiel management must follow the standards of security of materiel(s) and storage locations IAW DoD 4140.1-R, DoD Supply Chain Materiel Management Regulation. Additionally, the provisions of Defense Logistics Manual (DLM) 4000.25-2-M, Military Standard Transaction Reporting and Accounting Procedures, and AF Joint Service Manual (AFJMAN) 23-210, Joint Service Manual for Storage and Materials Handling provide standards for storage and materiel handling and control of all supplies and equipment unless amended by Department of Air Force Instruction (DAFI) 23-101. Due to safety and environmental considerations, some items may need to be stored separately by commodity. When there is a conflict between the general provisions contained within AFJMAN 23-210 and the specific storage directions in a respective Technical Order (TO) that pertains to an asset, the specific provisions of the TO will take precedence. 2.3 Creation of Inventory Items An Inventory Item record is a key building block supporting the overall MC process. Once the Inventory Item record is created, the item can be used for the procurement process. MC uses 9|Page  Air Force Civil Engineer Materiel Control: GOCESS Playbook Inventory Item records, along with item specifications, to manage issuable materiel. An inventory item record must exist for each consumable specification that is managed and stored in an inventory location storage area. The inventory item record tracks and manages the transactions, quantities, and costs for each inventory items. Inventory Items are normally always created by MC. Once a consumable specification is identified, the following prerequisites need to be identified before an inventory item can be established: 1. Consumable specification - Enterprise specification or locally developed 2. Primary Location 3. Storage Area Inventory items are created for each unique consumable part used by the shops to support WTs, WGs, or U-FIX-IT. 2.4 Disposal of Excess Materiel DAFI 23-101, Materiel Management Policy states that Department of Defense Manual (DoDM) 4160.21, Volume 2, Defense Materiel Disposition: Property Disposal and Reclamation and DoDM 4160.28, Volume 1, Defense Demilitarization: Program Administration implements the requirements of the Federal Property Management Regulation (FPMR), as it applies to the disposition of excess and surplus materiel. Materiel identified for possible disposal but with potential for reutilization will be transferred to Defense Logistics Agency Disposition Services (DLADS), unless new information justifies retention. The LRS/Materiel Management Activity may locally-direct transfers to DLADS when: The item is unserviceable or when the item is a locally assigned stock number and the item is no longer required. The item does not support an active weapon system or end item, and all disposal authority criteria has been met. HAZMAT disposal must be coordinated through local environmental staff using the EESOH- MIS for an evaluation of hazardous waste regulations and requirements. DAFI 23-101 states that DoD and DAF policy mandates all government materiel will be fully used and reused when the materiel can be used effectively, economically, and safely. Activities will never discard usable materiel. The following guidelines for determining the usefulness of items apply to both on-base and off-base organizations. All consumable items, serviceable or unserviceable, having potential use or resale value, will be collected, retained, and returned to the LRS, Materiel Management Activity. LRS will not accept serviceable property less than a full unit of issue. The LRS Materiel Management Activity will reissue and redistribute serviceable consumable items or direct they be taken directly to DLADS. Base-level organizations will transfer materiel to DLADS for items not processed through the applicable materiel management IT system. This includes the transfer of scrap and Government Purchase Card (GPC) purchased items. Segregation of scrap materiel is necessary to minimize DLADS handling costs and to ensure maximum return from the sale of disposed materiel. Segregation of scrap materiel will be accomplished by installation organizations initiating materiel transfers to DLADS. When items are coded disposal, disposing organizations’ items must be turned into DLADS and demilitarized 10 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook (DEMIL) prior to transfer IAW the DEMIL code assigned, DoDM 4160.21 Volume 3, Defense Materiel Disposition: Reutilization, Transfer, and Sale of Property, DoDM 4160.28 Volume 2, Defense Demilitarization: Demilitarization Coding and Department of the Air Force Manual (DAFMAN) 23- 122, Materiel Management Policy. Note: Click DLADS to find instructions for turn-in of usable scrap and hazardous property. 2.5 Cycle Counts Information about physical inventory control can be found in DLM 4000.25, Volume 2, Chapter 6. GOCESS units must perform inventory actions on all inventory items at least once every 365 days. This includes items stocked in the store, items being held for maintenance scheduling of WT, forward stores, outdoor storage locations, warehouses, etc. Maintaining accurate inventory records is key to ensuring leadership’s confidence in financial decision-making. Correction of differences between the physical on-hand quantity and the NexGen system quantity is the goal. In addition, fiscal responsibility demands item and materiel cost accountability. For CEO, MC inventory is counted either daily, weekly, or monthly until all items have been counted over time. This is termed “cycle counting”. Cycle counting provides accurate results for comparison of the count to the recorded balances. Therefore, adjustment to inventory records is important for both financial and operational decision making. 2.6 Inventory Results Lack of valid inventory counts leads to a false interpretation of available inventory items that can be issued over the counter to WTs or WGs. It also creates the need for inventory adjustments that have to be researched and processed. MC personnel are already busy; adding additional workload will only serve to slow them down. Additionally, not performing timely inventory actions results in situations where fraud, waste, and abuse are prevalent. Leaders and managers must remedy this situation by taking a direct interest in inventories being accomplished on time and accurately. Inventory items loaded into NexGen are required to have a storage location loaded and, in turn, must be checked to determine if there is any on hand quantity. Many items may not have on hand quantity and checking to ensure the location is valid and empty ensures there are no rogue items. This is termed “warehouse validation” and is required at least one time per year for each item. The date that this action is taken needs to be updated in the inventory item as a Date of Last Inventory (DOLI). For these items not stocked in the store, when the on-hand quantity and the NexGen quantity match (both would be zero quantity), enter the reason in the inventory item as warehouse validation. If a quantity is located when checking the warehouse location, that quantity would then need to be put on record through either a transfer-in or Found-On Base (FOB) transaction. If there is no quantity either on hand or on NexGen record, then the date of last inventory needs to be updated to the current date. 11 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook 2.7 Inventory Adjustments MC must ensure that inventory items have the same quantity reflected in NexGen records as the quantity of the Inventory items that are physically on hand. If there are any differences, it is possible that MC may locate the missing quantity through research and documentation. Failing to accomplish this step will require an inventory adjustment to be completed. 2.7.1 Donated In This essentially means that the NexGen computed quantity and the on-hand physical quantity in the bin do not match. MC processes a donated-in transaction whenever there are quantities of items located either in the shop (not used on WT) or in the warehouse bin that are not reflected in NexGen. Whenever more quantity is in the bin than on the computer record, the inventory team performs research. MC documents the reason(s) for the NexGen computed quantity and the on hand physical quantity not being the same. The reason for making an inventory adjustment must be annotated on the inventory item. Performing a donated in transaction to adjust an on-hand balance will not substitute a cycle count requirement to be performed every 365 days. Example: Maintenance checked a building before it was picked. They discovered serviceable items and collected them and notified MC, who processed the FOB transaction. Maintenance just threw the collected items into a bin in the shop. Later the shop discovered the items again and took them to MC. 2.7.2 Donated Out Once again, the NexGen computed quantity and the bin's on-hand physical quantity does not match. There is less quantity in the bin than on the computer record. Reasons for this could include receipts were processed but have still not been binned. It could also mean that items were binned in the wrong location. MC may have pulled materiel from the bin with the intent to process an issue to a WT, but the issue was never processed. Every donated in or donated out transaction requires a reason for the adjustment to be made. Adjustment justification provides accountability of consumables bought with appropriated funds. Each dollar that is either donated in or out has an effect on the overall dollar value of available materiel to perform maintenance on the utilities, facilities, roads, and grounds on the installation. 2.8 Property Lost, Damaged, Destroyed or Stolen Department of Defense Instruction (DoDI) 5000.64_DAFI 23-111, Management of Government Property in Possession of the Air Force, establishes policy, assigns responsibilities, and provides requirements and procedures for accounting for tangible DoD equipment and other accountable property IAW Title 40, Public Buildings, Property, And Works, United States Code (USC). Title 31, Money and Finance, Section 901 of the USC outlines requirements that reflect the accountability perspective of property management. This supports lifecycle management of items including the documentation of lifecycle events and transactions. It helps DoD property managers, accounting and financial managers, and other officials understand their roles and responsibilities. It also complements the accounting and financial reporting requirements in DoD 7000.14-R Financial 12 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook Management Regulation (FMR). Please see DoDI 5000.64 for further information including policy and definitions. DAF level policy may direct additional requirements or may supplement the following list of items requiring accountability records, based on the needs of the DAF: A. Property with an acquisition cost less than $5,000 that is controlled or managed at the item level. B. Pilferable property when it has been identified as a problem area. C. Property hazardous to public health, safety, or the environment. Such property is typically regulated by federal or state environmental and safety laws. D. Scrap, including records for managing scrap sales under qualified recycling programs. See DoDI 4715.4, Pollution Prevention for additional information. Personnel assigned to MC can reference DoD 7000.14-R FMR, Chapter 7, which provides definitions for government property, lost, damaged, destroyed, or stolen. Upon discovery of loss, damage, destruction, or theft of government-owned property (real or personal) of any value, the first line supervisor or, in the case of military, immediate superior within the chain of command, shall conduct an inquiry to determine if the situation warrants a more formal inquiry, i.e., an investigation. An investigation shall be conducted for all loss, damage, destruction, or theft of government-owned equipment with an initial acquisition cost (value) of $5000 or greater. It includes all sensitive, classified, or leased (capital Lease) property regardless of initial acquisition cost, and any RP. Investigations may also be conducted when circumstances warrant. For example, when the loss, damage, destruction, or thefts of small amounts of property occur frequently enough to suggest a pattern of wrongdoing, then an investigation may be warranted. Most of the items that MC processes are not equipment. A counter argument could be made that most of the items are indeed pilferable. For those items not covered by the equipment or pilferable definitions the argument can be made that since public funds were allocated for purchase of these items. Even if a formal investigation is not required based on dollar value, any inventory adjustment based on the results of an inventory shall be documented. Local procedures should be developed on how to document this process. 2.9 Materiel Maintained in Shops There are times when materiel not assigned explicitly to a WT is allowed to be kept in the shops. For example, if a shop meets the requirements for a forward store or when materiel has been partially used on a WT and is no longer considered a whole package as sold by the vendor, the shop is allowed to maintain these items. These items can be used on future WTs. 2.9.1 Forward Stores Shops can be authorized to operate a forward store if the following conditions are met: 1. The shop's location makes it more efficient to maintain some high use items than commute to materiel control bench stock, item accountability is key in maintaining items in a forward store. 13 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook 2. The shop has space for the forward store stock to be managed and trained personnel to account for materiel appropriately. The shop must also charge the cost to a WT or WG as appropriate each time an item is used. 3. An annual inventory action using the same process and procedures used in other stores and warehouses for each item maintained within the forward store. 4. Inventory item locations for each item maintained within the forward store. 5. The shop must coordinate with the CoMC to ensure a specification and an inventory item number is loaded for all items maintained within the forward store. 6. The shop must ensure that items maintained within the forward store are adequately protected from the weather, deterioration, fire, theft, etc. 7. When items are no longer needed in the shop stock, the item is turned in to MC if there is a foreseeable need. The CoMC will coordinate with other shops that use the item to determine if there is an anticipated need for the item turned in from the forward store. If there is a projected need for the item, then MC will return the item to bench stock. If there is no known or projected need for the item, MC will transport the item to DLADS, and the inventory item is retired. 8. The shop must develop a memo (signed by the Shop Chief and the CEO Commander or Deputy). The memo needs to state the purpose for the store, the specific items and quantities being maintained, and that the shop is responsible for the store's management. 2.10 Precious Metals Recovery Program (PMRP) The PMRP will be conducted IAW in DoDM 4160.21 Volume 2, and TO 00-25-113, Conservation and Segregation of Critical Alloy and Precious Metal Bearing Parts and Scrap. All DAF activities must establish protection requirements for fine precious metals, precious metals bearing scrap, and high content precious metals bearing items IAW DoDM 4160.21, Volume 2 6.3.3.2.1. Using activities will maintain an accountability file for silver recovery equipment and supplies provided by DLADS at no cost, the kind of precious metals scrap generated, and the kind of fine precious metals and high precious metals content items used. Contractor activities operating on an DAF installation where precious metals are used, or recovery is involved must ensure that the PMRP is addressed in the Performance Work Statement (PWS) or equivalent. 14 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook Chapter 3 Management of Inventory Items When maintenance shops and MC agree to stock high use items in the main store or bench stock, MC also sets minimum levels, reorder points (ROP) and reorder quantities for the items. MC will also work with the shops to set the minimum level and ROPs to prevent stock out conditions. To ensure that the correct items are maintained in adequate quantities to support maintenance requirements takes coordination and discussion between MC and the maintenance shops. The store will only have the items available for issue to WTs when this has occurred. 3.1 Collaboration Shops know best what items are needed repetitively. The minimum maintained is equal to a level used within 90 days. That means the quantity maintained in the store or bench stock is adequate to allow the maintenance shop to perform routine maintenance activities for its customers for a 90- day period without the need to reorder. This allows for items stocked on-hand to be ordered when the remaining quantity meets the ROP. This also prevents stock out conditions that require more urgent procurement. 3.2 Setting Levels NexGen allows the CoMC/inventory technician to establish ROPs, reorder quantities, and minimum levels. 3.2.1 Minimum/Maximum (Min/Max) Level A Min/Max Level is a specific level at which stock needs to be replenished. In other words, it tells when to procure an item. Min/Max is a formula used to derive an inventory units’ amount to order that represents the lowest possible total cost to the ordering entity. The objective is to find the optimal order quantity to minimize logistics costs, warehousing space, stockouts, and overstock costs. 3.2.2 Reorder Quantity Reorder quantity is the total number of product units requested from a manufacturer or supplier on an inventory replenishment PO. The exact amount should not be so high that there is too much capital tied up in inventory and subsequent warehousing costs, but not so low that there’s not enough safety stock and a risk of stock out before the next order. In other words, the ROP is the quantity that will last long enough until the reordered quantity arrives and becomes available in the ecommerce warehouse. That said, the ROP formula is the sum of the total units needed to get through the manufacturing lead time wait plus some safety stock. Therefore, if the price of manufacturing or sales are increasing, the ROP to replenish inventory will also have to be increased. 3.3 Minimum Level This represents the quantity which must be maintained on hand at all times. If stocks are less than the minimum level, this will potentially lead to a work stoppage due to a shortage of materiels. 15 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook Keeping a close monitor of this level acts as a safety measure. For this reason, the minimum stock level is commonly known as safety stock or buffer stock. The main factors to consider when maintaining the minimum stock level are: Average rate of consumption of materiels. Time needed to procure fresh supplies under top priority conditions. Re-order level. Production (maintenance) requirements in terms of materiels. Minimum quantity of materiels that can be procured advantageously. Formula for Minimum Stock Level. It is imperative to consult the shops when determining what the minimum quantity desired to be maintained on-hand is, they may know if there are any mission changes anticipated to the normal operation and whether the changes are expected to be long term. ROPs in NexGen generate and send PRs to the CoMC for creation of a PO. Automatic PR generation, customarily used to restock the main store or bench stock, is an option that the CoMC can set-up as this allows the levels set for ROP point and quantity to be activated and for items to be procured without need to manage each item individually. It is equally important that the quantity maintained be monitored so the correct item, in the correct quantity, is available for immediate issue. Recorded consumption of the specific item may require an adjustment of the quantity required to be maintained. Mission surges or changes can result in different quantities being maintained and also in reduction of need for other items. MC needs to discuss adjustments to on-hand stock with the shops before taking the action. Not stocking the store in sufficient quantities, being incapable of providing items typically stocked in the store, and not meeting the customer’s Required Delivery Date (RDD) for maintenance item requirements can result in “stock out” conditions. In addition, these actions delay the ability for the CE to meet mission requirements. Recorded consumption of the specific item may require an adjustment of the quantity required to be maintained. If maintenance is using more of an item than predicted, then the decision needs to be made to either raise the quantity being maintained or to leave the quantity as it is realizing a surge in requirement is not the norm. This decision is dependent upon what the future requirement is expected to be, how long it takes to procure and receive the item and cost considerations that drive the level of maintenance on the installation. Mission surges or changes can result in the need to increase the quantities needed to be maintained. If the quantity being maintained in the store is more than needed, then perhaps the quantity being maintained is excessive and the level maintained needs to be reduced. Coordination and discussion between MC and the shop must take place to allow an effective materiel management program to be operated. 16 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook Chapter 4 Issue Materiel The Issue Materiel process details how inventory items that are either stocked in the main store or non- stocked items which have been purchased are issued to support WTs, WGs, or U-FIX-IT from the GOCESS. 4.1 GOCESS Store Materiel Issue The CoMC/Inventory Technician issues items to the WG, WT, or a facility-to-Facility Managers (FM) in order to complete a work requirement. The Chief Financial Officer (CFO) requirements dictate that materiel is issued to a specifically identified person. There are several different methods of issuing materiel/creating Issue Tickets in NexGen that CE must adhere to: Full/partial issue to original requestor. Full/partial issue to an alternate person. What confuses many people is simply the word "Materiel" which might lead one to believe inventory items are always either Direct or Indirect. What we really need to do is "categorize costs" based on how the materiel is used in the context of Job Cost Accounting Principles. Generally, we do not categorize materiel as indirect or direct materiel before the time of issue and must first understand how it will be used. In other words, it is the circumstance of the materiel's use that determines how it is to be properly accounted for. It is advised that organizations establish a process of reviewing materiel charges periodically. This includes verifying indirect materiel is not being charged to WTs and direct materiel is not being charged to the WG. Additionally, special attention should be placed on pseudo locations which will be discussed below. It is important for the Foreman and Lead Technician to work with the CoMC to set the appropriate unit of measure (UOM) for items. If MC only distributes pallets of light fixtures, the materiel will nearly always be issued as Indirect Materiel as all of the materiel will not be used on a single task. Some items run into issues frequently with UOM such as oil, lubricants and paint. These items are often ordered in large quantities such as a 55-gallon drum due to the large discount (or limited availability) with the expectation that they will be spread across many jobs. As long as it is logical to do so, this would be a best practice. If smaller quantities can be ordered for specific jobs, it is worth discussing to ensure the right cost are placed on the right assets. 4.2 Indirect Materiels Indirect materiel and its associated costs involve materiel where the entire cost/consumption of the item cannot entirely be attributed to a single WT. In this case, the materiel cost is issued to the WG as indirect materiel so that its cost becomes part of the calculated shop rate to be spread out over the cost of all future work. While it is possible to charge the actual cost in some cases by loading every Inventory Item with its lowest possible unit of issue, i.e., issue each individual nail one-by- one, the effort to do this is simply not justified. The classic example is a box of screws/washers/wire nuts where the box is considered the most efficient unit of issue. When MC procures these items, they use the unit of issue of box. However, these consumable items are used daily in the structures, Water and Fuels Systems Maintenance (WFSM), and Electric shops across many different jobs and the effort to order, issue and calculate the cost of a single screw/washer/wire nut is simply not practical so they are issued to the WG as a box. 17 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook The issue of Reimbursable Customers comes up frequently when discussing Indirect vs. Direct materiel. CE financial managers such as the Operations (Ops) Chief or Deputy, Ops Superintendent, and COMC want to ensure every dollar is charged correctly, especially for reimbursable customers. The most important thing the Foreman and Lead Technician and other decision makers need to ensure is that if the entire UOM for the item will be used for a particular job, that part is charged against the WT. This will ensure those materiels are reimbursed in accordance with the agreement with each base organization. 4.2.1 Key Points to Know about Indirect Materiel Cost Indirect materiel cost is only assigned, by materiel issue transaction, to the WG. Examples are office supplies and Personal Protective Equipment (PPE) are used in the daily business of running the shop those supplies should be issued to the WG as indirect materiel. Indirect materiel issue will almost ALWAYS be to Actual Time Accounting (ATA) WGs. There may be some PPE that could be issued to personnel in Estimated Time Accounting (ETA) WGs. For example, a person in the Requirements and Optimization (R & O) section purchasing PPE. Indirect materiel cost may be for consumable items, e.g., box of screws, or may be for tools and personal protective gear issued to craftsmen in order for them to work safely and efficiently. So, the issues of work gloves and pocket multi-tools are also legitimate indirect "materiel" costs in that they enable the craftsmen to work on many different jobs and are a "cost of doing business". Indirect materiel must NEVER be issued to WT. Indirect materiel costs are NEVER directly reimbursable. Cost reimbursement for indirect materiel issues is accomplished via the shop rate charged to the reimbursable customer. Indirect materiel costs are ADDED to the hourly shop rate calculation, i.e., a shop rate of $76/hour will include a factor for indirect materiel costs issued to all the Ops Flight ATA WGs. It is true that a materiel may be Indirect and Direct based on the application. Three boxes of screws may be issued directly against a 2B WT to construct a pavilion with the expectation that all of the materiel will be used on that task. A box of screws may also be loaded against the Structures Shop WG as indirect materiel because the items will be used across many different WT's. Never issue any materiel to WTs assigned to the pseudo locations of: HEAVYVEH1, SMENGINE1, or SHOPTOOL1. These Pseudo Locations are only to be used on WTs that account for labor. Instead issue materiel related to effort on these WTs to the WG as Indirect Materiel because we need those materiel costs to be factored into the shop rate. See more regarding Pseudo Real Property Records. 4.3 Direct Materiels Direct materiel and its associated cost involve materiel and cost of an item for which the entire cost/consumption of the item is attributed to a single WT. In this case, the item is issued to the WT on which it is consumed since the cost of the materiel is exclusively tied to the specific WT. Should some materiel be excess and not returnable, e.g., no longer in a unit of issue like 1/2 box of screws, then the full costs can still be captured on the WT as Direct Materiel cost even though shops will 18 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook treat the surplus 'like indirect' materiel on subsequent jobs. However, this surplus cost will not be associated to the indirect costs factored into the shop rate; this situation should be avoided whenever possible. Shops should NEVER order surplus materiel for a job, especially a reimbursable customer, with the expectation that the materiel will be used as "shop stock" for future jobs. Not only is this practice artificially changing facility cost, a key indicator of facility health, it also is potentially fraudulently charging a customer for materiel that was never intended to be used on their project. Note: If you wouldn't want a contractor to charge you in the same way for a job at your house, don't charge your customer for it. 4.3.1 Key Points to Know about Direct Materiel Cost Direct materiel cost is NEVER issued to the WG, only to WT. Direct materiel cost is ALWAYS assigned, via a materiel issue, to the WT and by extension the cost is pushed to the Annual RP Operating Cost of the facility and customer reimbursement when applicable. Direct materiel cost is NOT added to the shop rate. It is added into the Total Cost of the WT through the PRs for the WT process. Direct materiel cost is directly reimbursable when issued to a WT where the customer has a reimbursable agreement. Direct materiel cost CAN be used when issuing tools, equipment, or PPE if that item will be rendered non-serviceable after its use on the WT. For example, issuing a box of dust masks that will be consumed and rendered non-serviceable after their use on the WT job site. 4.4 U-Fix-It Materiel Issue The type of materiel issued to FMs is decided locally in the Unit’s U-Fix-It program. The most common process used to issue materiel is directly to the facility and issued to the FM. In cases where the FM does not have an active NexGen IT System Authorization Access Requests (SAAR), a Non-User account can be created as long as it the FM’s name is referenced in the comment section in NexGen IT. Another Issue process for U-Fix-It would be to create a new WT each time materiel is issued, or for reimbursable customers, via a Facility Operations Facility Project (FOFP) opened each fiscal year (FY). Any lodging maintenance team materiel issues should be accomplished via a FOFP to ensure work history against the facility is captured and it flows to cost accounting as reimbursable line item. These teams typically may not be doing U-Fix-It only scope work. When deciding whether to issue directly to a facility, individual WT, or FOFP, local manning within R & O and MC employees is a key consideration. The preferred method is directly to the facility, followed by FOFP, and lastly via individual WT to reduce the level of administrative effort. 19 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook Chapter 5 U-Fix-It Program The U-Fix-It Program supports the performance of minor maintenance and repair work requirements within facilities assigned to FMs. These requirements must not require specific training, expertise, or special tools to complete. FMs, MC employees, and CE personnel must follow provided guidance in AFI 32-1001, OE, FM, and the MC Playbooks. Local installation, state, and federal directives may also support and provide additional guidance respective to the use and management of U-Fix-It Program. The U-Fix-It Program supports FMs on the installation. It is designed to allow the FMs the ability to perform small repairs that don’t require specific tools, knowledge, or skill to perform. This function is typically a portion of the main store but can be a separate function aside from the main store. FMs may request commonly used facility repair items here. 5.1 U-Fix-It Program Scope The CEO, OE Element, will establish the scope of this program. The U-Fix-It Program employs a “do- it-yourself” concept for ‘on-the-fly’ tasks that the FM can accomplish and do not require any special tools, materiels, or training. Do-it-yourself is defined as requiring no comprehensive planning to include any detailed calculations to determine size and resulting materiel quantities or producing a detailed parts list. Examples include replacing toilet seats, ceiling tiles, switch plates/electrical outlet covers, along with touch up painting. The R & O section will decide which materiel and tool items are issued to FMs. This information will be included in the installation FMs Handbook. Work classified as U-Fix-It, that has not been preapproved by OE requires the FM to submit a service request (SR) to R & O. If the R & O section subsequently approves the SR as U-Fix-It, the FM is notified. 5.1.1 Operation Courses of Action (COA) for GOCESS U-Fix-It Program Storage of inventory items for the U-Fix-It Program can be with the items maintained within the main store, or if business warrants and space is available, the U-Fix-It Program storage could be in a separate location. This decision will be made by the CoMC. The CoMC is charged with responsibility of operations within the GOCESS Store and the U- Fix-It Program function. All over-the-counter issues, POs, receipts, final invoices, and disposal transactions will be processed in NexGen by the U-Fix-It Program or MC. 5.1.2 Customer Verification The CoMC must verify that the FMs name and identification information are loaded into the NexGen database. This information will be referenced with the current FM listing provided by the Requirements Section of R & O. If not loaded in NexGen; then the Requirements Section will work with the FM to establish an account. If materiel is issued to housing occupants, the occupant will be verified against a list of occupants provided by the Military Family Housing (MFH) Flight or the MFH Contractor. 5.1.3 U-Fix-It Program Work Effort Preapproval When the work requirement has been preapproved by the CEO, OE Element and the scope is listed in the base FMs handbook. The FM will proceed to the U-Fix-It Store to have materiel issued. 20 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook 5.2 Loaned Tools If the item requested is a tool (a non-consumable item), the GOCESS Store and the FM complete an AF Form 1297, Temporary Issue Receipt with an agreed return date. NexGen is not used for loaned tools. MC maintains a copy of the hand receipt and provides the FM a copy. DoDI 5000.64_DAFI 23- 111, provides instructions for the use of the form. 5.2.1 Tool Safety If tools are loaned, U-Fix-It Program personnel must frequently check tools to ensure they are maintained in a safe condition and remove defective tools from service immediately. The manufacturers’ manual or guide provided with the tool should list the proper training and safety pre-caution requirements. If not available, research the manufacturer’s website for the information. If no guidance is available from the manufacturer, use general safety practices as provided within DAFMAN 91-203, Air Force Occupational Safety, Fire, and Health Standards chapter 2, subparagraphs 2.1, 2.2, 2.3, 2.4, 2.5. 5.2.2 Personal Protective Equipment (PPE) and Documented Safety Training Proper PPE must be offered when tools are loaned out, and personnel must be trained on the safety of the specific tools being loaned. This training must be documented on the members AF Form 55, Employee Safety and Health Record. MC will provide the DAF Form 55 with specific training annotated or an official document (CE squadron letterhead) signed by the individual that provided the training. The FM can provide this DAF Form 55 or official document to the supervisor and retain a copy in the FMs Safety Program file. See DAFMAN 91-203, Chapters 2, 7, 8, 10, 11, 12, 14, 22, 25 for specific information. 21 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook Chapter 6 Create Purchase Request (PR) A PR is a materiel request sent by the shop to MC to purchase items to be used on a WT (direct materiel). Shops also request items needed by assigned personnel such as tools, personal protective equipment, or general consumption items (indirect materiel). Items normally carried in bench stock or the store are most often issued over the counter to the WT or WG and do not require a PR to be submitted. When those items are not available for issue over the counter but the shop requires them to support a WT, the shop can provide the PR to MC so that the item is ordered. MC adds "new" Inventory Items in NexGen. Often these items are ordered to support a WT or WG requirement and a PR must be processed. These items are not typically used repetitively so a decision is made not to stock them in the main store as operating stock. When items maintained within the store or bench stock run low on quantity, the CoMC can process a PR (provided money is available to do so) so that items are ordered to stock the main store. This allows those items to be made available for over-the-counter issue to craftsmen. 6.1 PRs PRs are primarily used to procure items to support materiel requirements for WTs or WGs. They can also be used to order materiel to stock the GOCESS Store. Procurement of non-materiel items such as services and equipment rental will also require PRs to be submitted. There are two types of PR’s that can be used. The first is identified as an Inventory PR which is used to order an Inventory Item which will be classified as a consumable part or required goods. The second type of PR is considered a Non-Inventory PR, which is considered a request for service. The service can be for purchasing labor to provide support or it can be a vehicle rental to support a WT. 6.2 Types of PRs The following sections provide additional detail of the various types of PRs. 6.2.1 PRs for Operating Stock PRs for Operating Stock includes all materiel that shops regularly use to complete common WTs. MC is the creator of PRs for stocked items. Shops create PRs for stocked items when the quantity required exceeds the quantity on hand in the bench stock or store. Inventory items regularly used to support WTs should be stocked, which will reduce the need to submit PRs for high use items. If a shop needs to have an inventory item stocked in bench stock or the store without first establishing the item as repetitive use, MC can add the item to the store provided there is a compelling need and storage space allows. 6.2.2 PRs to support a Work Task Non-stocked materiel requirements are in fact quite common, because they represent either a one-of-a-kind requirement or the demand is so infrequent as to not be worth the effort to maintain stock levels. One reason for this condition is this may be the first time the end item or system component required repair. In these situations, the demand (number of times issued) for the item has not been significant enough to require the item(s) to be stocked in the store. Procurement of a non-stocked item will require the Shop Foreman or Lead Technician to submit a PR to MC. 22 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook The shops will be the primary creator of PRs for non-stocked items from within the assigned WT. However, MC also can create non-stocked item PRs. 6.2.3 PRs for Indirect Materiel Indirect materiel PR’s involves materiel where the entire cost/consumption of the item cannot entirely be attributed to a single WT. The purpose and the PR process is similar to PR’s for WTs. When ordering Indirect Materiel a WT is not required. A PR submitted for Indirect Materiel will have different approvals than a PR submitted through a WT, because there is no WT, the PR will route directly to the shop foreman of the person who is submitting the request. This process is mostly used for ordering Indirect materiels, tools, equipment, PPE gear, etc. 6.2.4 Non-Inventory PRs A Non-inventory PR is used for a contract provided service or equipment rental. The shop that requires equipment to be rented or contracted service, will submit a PR to MC. This PR must be detailed enough so that someone who is not familiar with the equipment or service will understand the details well enough, to be able to communicate with the vendor. It is imperative that the requestor provide the correct information so that the correct equipment or service is in the right place at the right time. A critical distinction of a non-inventory item procurement is to remember that does not involve consumable materiel or a shop equipment purchase. It is merely a case of renting a piece of equipment for a specified period of time and when that portion of the job is complete the equipment is returned to the vendor that rented it to the government. The same would be true for the service. Once the contractor has rendered the service required, the contractor is paid. The Non-inventory PR process is established because the payment for the service/rental is being paid for by MC with the GPC. If payment for this type of request is being paid for outside of MC, a PR is not required. 23 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook Chapter 7 Purchase Orders (POs) MC does not carry all items required by CE in the bench stock (store). For example, an item is often not used enough to justify it becoming a GOCESS Store item. In these situations, MC uses a PO to procure the items needed to fulfill the WT or WG requirement. Additionally, the PO is used by MC to restock normally carried items. 7.1 Right Quality This refers to the suitability of an item for the purpose it is required. Quality is decided by the shops who perform the maintenance. The quality is most often determined by experienced technicians who understand the need for the specific grade of materiel contained within the product. First-rate or “A” level quality may not be needed in all cases. 7.2 Right Quantity The correct quantity is the quantity that may be purchased at a time with the minimum total cost, which prevents shortages of materiel(s). A few considerations are: 1. Is MC working with the shops to determine the levels of specific items to maintain in stock based on previous experience and future needs or expectations? 2. Is the ability to obtain the item in a reasonable amount of time-dependent upon the WT priority and the required delivery date? The MC expert researches and determines a reasonable order and shipping time for the item. This is typically done by speaking with vendors, researching previous orders, and understanding the ability of the mandatory sources to provide the materiel when and where it is needed. One must consider the availability through local vendors. In other words, be familiar with the market the materiel is being ordered from. Also, look at the annual consumption of the items. Finally, remember that there are other costs associated with the quantity that is kept available. For example, it is essential to understand the nature of the manufacturing process. Consider ordering summer-type items in late fall or winter, so they are available in early spring or summer. Conversely, materiel(s) required for the winter need to be ordered in the spring or early summer for availability in fall or winter. Craftsmen need to be cognizant that for each item that is ordered and left sitting in a warehouse, there is a cost associated with the heating and cooling of the space where the items are held and a cost for the facility itself. Avoid ordering excessive quantities of items at cost. This practice prevents waste and ensures funding is available for critical items. Again, this averts redundant storage and the potential costs of hauling perfectly good items to DLADS due to the item not being used. Bulk ordering has advantages of economies of price and less operational costs for purchasing. Items that are inexpensive or slow-moving may be ordered in bulk to ensure availability. 7.3 Right Time The time chosen to order is of the utmost importance. For items that are used repetitively, the right time means consists of when the stock reaches the minimum level. This is the level that on-hand 24 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook stock should not fall below. It is vital to take the time to meet with the shops to determine what they consider to be an adequate level of specific items. A good suggestion is to keep repetitively used items at a 90-day supply. This ensures enough materiel(s) on-hand to last maintenance for up to 90 days, without needing to place another order. These levels are intended to prevent “out of stock” conditions that require increased urgency to obtain. The majority of the items being maintained in the store or bench stock need to be repetitively used items. The reorder levels need to seriously be considered. When the on-hand quantity of an item reaches its minimum level, a resupply order is required to be placed immediately. The quantity to be ordered for the resupply involve the following: The Reorder Level is equal to the Maximum Consumption (how many of these items are being used over a 90-day period) X Maximum Reorder Period (how long it takes from the time the order is placed until the item is delivered). Also, consider whether local stores provide delivery service or if there is a pick-up required from those stores. Ultimately, time is money and if the stores can make deliveries, that frees up time to enable MC to concentrate on other areas of the mission. 7.4 Right Source The DoD is somewhat limited in this regard. The Federal Acquisition Regulation (FAR) Chapter 8, Mandatory Sources and FAR Chapter 12, Commercial Item Procurement regulate much of what can and cannot be done legally. DLA, GSA, UNICOR (formerly Federal Prison Industries), National Industries for the Blind (NIB), SourceAmerica, etc. are mandatory sources of procurement of materiel used by CE craftsmen. Essentially, the MC and shops must first go to these sources and others listed in the FAR. If these mandatory sources are unable to provide the required item, then the unit can use an alternate source and method of procurement. It is important that the MC knows and understands the materiel being held in the store or bench stock to the point that orders can be placed, and items are shipped to prevent “out of stock” conditions. Adopting this practice can remove the element of waiting for an order to “figure itself out.” Therefore, MC must work hard and communicate with DLA, GSA, CE shops, and others to ensure that the required materiel is available and provided when and where needed. When local sources are used for materiel procurement, it is essential to look for suppliers that can supply the right quality and quantity needed when the materiel(s) are required to be available at the agreed price. Additionally, look for vendors that can be relied upon to commit to the installation and its needs without much follow-up. 7.5 Right Price Deciding the right price of a product depends on various factors, such as: A. Quality B. Delivery time C. Ultimate life of the materiel D. Demand and supply curve E. Extent of competition 25 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook F. Government restrictions G. After sales services H. Discount offered I. Purchase terms Therefore, determination of accurate price depends not only on market knowledge, but also a clear understanding of the pricing process. The buyer needs to monitor and consider the factors mentioned above in the process of determination of price. Consider whether a proposed item to be purchased represents the best value for money or not. This is known as a value analysis. The prevailing market prices also provide basis for the price determination. 7.6 Supply Sources used at GOCESS Locations The MC personnel evaluate all open WG PRs/restocking needs and the potential sources of supply for the needed items. Shops can recommend a specific vendor for items as long as the requirements within the FAR are met. Available sources that can be used include: LRS Prime Vendor (PV) Installation Contracting GPC A number of important decisions must be considered before using the GPC card as a purchasing option. MC and the maintenance shops need to develop a mindset where using the GPC and local vendors is not the first and only method of procurement. As a reminder, everyone is responsible and accountable for ensuring the mandatory supply sources are used in compliance with the FAR. 7.7 Supply Funding Document (SFD) and CE Financial Management Sources When Inventory Items are available for issue from the GOCESS Store, it is issued over the counter by MC. When Inventory Items are needed by maintenance shops and not immediately available to be issued, it is procured. The first step in procurement is ensuring that the CE Financial Manager has loaded funds into the SFD. 7.7.1 Supply Funding Document Types B – BPA/Contracting: Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services, but the exact items, quantities, and delivery requirements are not known in advance. Common BPA's include: concrete, asphalt, crushed rock etc. The source of supply on POs using this funding document will be "Base Contracting". C – COCESS: This type of funding document will be used at installations that have a COCESS that will be responsible for all the procurement of materiel. The source of supply on POs using this funding document will be "COCESS". G – GPC: All purchases using the GPC will be associated to the GPC funding document. ONLY GPC cards assigned to MC will have a supply funding document. The source of supply on POs created by MC using this funding document will be "GPC". MC will follow instructions in DAFI 64-117, Air Force Government Purchase Card Program. Maintenance 26 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook shops sometimes have personnel designated as GPC cardholders. This requires a different method of cost entry than the method used by MC. GPC cardholder data entered by the maintenance shop cardholder (the direct entry cost on the WT) is not the responsibility of MC. MC will follow the PR, PO, Receipt, Invoice and Issue processes as explained within this BPL, and the MC Playbook and Reference Guide. CE maintenance shops that have assigned GPC cardholders who purchase items for work tasks and workgroups will have a separate AF Form 4009 for their supply funding dollars. The maintenance shop cardholder and approving official will follow instructions in DAFI 64- 117. When GPC cards (used by maintenance shops and not assigned to Materiel Control) are used to purchase materiel or a service to support a work task, manual entry of the cost in the Direct Cost section of the WT is mandatory. It is incumbent upon the GPC card holder to ensure the direct entry cost entry is completed. MC is not required to manage these purchases, rather the maintenance shop GPC cardholder bears the responsibility. O – One-Time Purchase: CE Financial Managers can set up one time supply funding documents for specific orders. For example, if a new chiller is required and is ordered with an AF Form 9 through Base Contracting, a one-time purchase is the appropriate funding medium. The source of supply on POs using this funding document will be "Base Contracting". S – Standard Base Supply System (SBSS): All orders processed through the LRS or equivalent will be associated to the SBSS supply funding document. The source of supply on POs using this funding document will be "SBSS". V- Prime Vendor (PV): The DLA Maintenance, Repair, and Operations (MRO) PV program requires the use of the PV funding document. The source of supply on POs using this funding document will be "PV". 7.7.2 PO Process 7.7.2.1 BPA Purchases When procuring items using a BPA, follow process procedures within FAR 13.303 BPA or FAR Part 8, paragraph 8.405-3. The SFD is titled BPA. The Contracting Squadron normally dictates AF Form 9 process procedures. When procuring items with an DAF Form 9, use the MC BPL SharePoint at the PO tab, PO Variants by Source of Supply Drop Down, Base Contracting POs. The SFD is titled One Time Purchase. The DAF Form 9 and BPA materiel procurement documents must be routed through MC. MC will vet these documents with the CE Financial Manager to ensure all financial information is correct. MC will also coordinate the BPA requirement and the DAF Form 9 with the Base Contracting office for procurement. MC is responsible for ensuring all NexGen materiel transactions for the procurement have been processed. This includes loading of inventory items, PO, receipt, and issue to respective WT. 27 | P a g e  Air Force Civil Engineer Materiel Control: GOCESS Playbook AF Form 9 is used to procure items from commercial sources. The items required are recorded on this form, and transactions must be processed in NexGen by MC. The MC BPL SharePoint, PO tab provides instructions for this process. Go to the PO tab, click on it, choose PO Variants by Source of Supply from the drop-down menu, and choose Base Contracting POs from the drop-down menu. 7.7.2.2 DLA PV purchases DLA assigns PVs by geographic regions of the United States (US) and foreign countries. Those vendors provide price quotes and also source the required materiel when the government submits a funded PO.